Using your own words and select a graph that best illustrates your answer. It should be one graph per question.

1. According to your predictions, what would happen to the price of gasoline if the cost of cars using alternative energy sources were cheaper than conventional (gasoline-powered) cars?

2. What would happen to the price of oil?

3. What would happen to the demand for gasoline?

4. What would happen to the quantity of gasoline demanded?

5. What would happen to the supply of gasoline?

6. What would happen to the demand for conventional automobiles?

Graph B Graph A All else being equal, when tastes change against a good or when consumers' income All else being equal, when tastes change in favor of a good or when consumers' income decreases, the demand for that good decreases (the demand curve shifts to the rises, the demand for that good increases (the demand curve shifts to the right). As a ham. A5 a consequence, the price of the 300d falls; thus, bidders want to sell a consequence, the price of the good rises; thus, bidders want to sell a greater quantity of smaller quantity 0f the 300d offered and demanders want to buy a smaller quantity the good offered and demanders want to buy a greater quantity of the good demanded. 0f the 300d demanded. Graph C Graph D All else being equal, when technology progresses or the price paid by suppliers for inputs decreases, the supply of that good increases (shifting the supply curve to the right). This causes the price to decrease, the suppliers are willing to sell a larger quantity offered and the demanders are willing to buy a larger quantity demanded. All else being equal, when technology fails or the price paid by suppliers for inputs increases, the supply of that good decreases (the supply curve shifts to the left). This causes the price to increase, the suppliers are willing to sell a smaller quantity offered and the demanders are willing to buy a smaller quantity demanded